Safeway Inc. Announces Preliminary Results of 2006 Stockholder Vote

Business Wire, May 26, 2006

PLEASANTON, Calif. -- The Board of Directors of Safeway Inc. (NYSE:SWY) announced the preliminary results of its stockholder vote at the Company's Annual Meeting.

Stockholders elected each of the nine directors by a vote percentage of 98% or better, re-approved the amended and restated operating performance bonus plan for executive officers of the Company and approved the appointment of Deloitte & Touche LLP to serve as the Company's independent auditors for the 52-week year ending December 30, 2006. Stockholders also voted on five stockholder proposals presented at the meeting. Consistent with the Board of Directors' recommendation, all five proposals were defeated by the following approximate vote percentages:

% Against
                                               ---------

    --  Cumulative voting                          67 %

    --  Separate vote on golden pay in a merger    71 %

    --  Formal communication mechanism between     93 %
        independent directors and shareholders

    --  Labeling genetically engineered products   93 %

    --  Sustainability report                      73 %

All figures are expressed in terms of percentages of the shares voted. Final vote totals will be filed with the Company's second quarter Form 10-Q in late July.

Safeway Inc. is a Fortune 50 company and one of the largest food and drug retailers in North America based on sales. The Company operates 1,772 stores in the United States and Canada and had annual sales of $38.4 billion in 2005. The Company's common stock is traded on the New York Stock Exchange under the symbol SWY.